In a recent development that could reshape the entertainment industry, CEOs David Zaslav of Warner Bros. Discovery (WBD) and Bob Bakish of Paramount Global reportedly met to discuss a potential merger. While it’s still early days, sources close to the matter have confirmed the meeting’s occurrence to The Hollywood Reporter.
Both WBD and Paramount stand as major entities in entertainment. WBD boasts ownership of Warner Bros. studios, HBO, and streaming service Max, among others. Paramount, on the other hand, holds CBS, Paramount Pictures, and several renowned cable channels like MTV and Nickelodeon.
A merger between these giants could offer significant synergies. For instance, WBD’s streaming services, alongside Paramount’s Paramount+, could become more competitive against industry leaders like Netflix and Disney+. Additionally, the deal could harmonize sports broadcasting rights, potentially bringing the NFL under the WBD umbrella.
However, such a merger would undoubtedly attract regulatory attention, especially considering the vast intellectual properties involved, from Star Trek to Harry Potter. Previous merger attempts, such as CBS News and CNN in the late ’90s, provide a backdrop, though they never materialized.
Both companies have faced challenges in recent times, with their stock values not reaching previous highs from the early streaming era. However, observers have long speculated about potential mergers in 2024, with WBD only able to act post-April due to a prior deal constraint.
Zaslav, known for his deal-making acumen since his leadership at Discovery Communications, has been an instrumental figure in the industry’s mergers. The recent discussions around Paramount come amidst Shari Redstone’s considerations to discuss National Amusements’ controlling stake in the company. Additionally, Byron Allen’s Allen Media Group has shown renewed interest, offering $3.5 billion for certain Paramount assets.
As discussions unfold, the entertainment landscape waits with bated breath to see if these industry titans will join forces.
